Any time I see people say "I don't see why I should care about my privacy, I've got nothing to hide" I think about how badly things can go if the wrong people end up in positions of power. The classic example here is what happens when someone is being stalked by an abusive ex-partner who works in law enforcement and has access to those databases. This ICE stuff is that scaled up to a multi-billion dollar federal agen…
Are you against income tax? Are you against business registration? All of these are subject to the similar issues with the stalker ex abusing a position of power?
You seem to be asking a question. The answer is no.
The IRS does not need to know my sexual orientation or circumcision status. Medicaid, on the other hand, may. (Though I'd contest even that.)